Is the Spanish Recession Increasing Inequality? Male Migrant-native Differences in Educational Returns Against Unemployment

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In this paper, we explore the impact that the current economic crisis is having on the extent to which education protects migrants and natives from unemployment in Spain. To do so, we use random constant models on a pooled sample of respondents to the Labour Force Survey (LFS) from 2003 to 2012. Specifically, we analyse the market value of the educational credentials held by African, Latin American and East European migrants compared with Spanish males aged 16–50. Our conclusions indicate that inequality in the returns provided by education to migrants and natives has been growing fast in recent years. In other words, migrants have been less able to grant themselves an employment through their education than natives since 2008 when the Spanish economy started to contract and that this process has also been speeding up since. We also identify important differences within the migrant category: while the potential to prevent unemployment among better-educated migrants from Eastern Europe decreased during the economic recession, it is Africans and Latin Americans who are worse off.